Changes to come into effect this week
Economic Development will become the Department for Enterprise (DE), and the Department of Education and Children will be renamed the Department of Education, Sport and Culture (DESC).
Although Minister Laurence Skelly will remain at the helm, the scope of the new DE will be reduced by around a quarter - losing a political member and several functions including the VillaGaiety.
Concerns were raised in Tynwald over the dropping of 'Children' from the new Department's name.
The changes will come into force this Friday.
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